Qualcomm (NASDAQ:QCOM) stock is a leading innovator in wireless technology, and their recent Q2 FY24 earnings report paints a bright picture for the company’s future. As the backbone of 5G technology, the company is revolutionizing the smartphone and PC markets with its advanced AI chips.
Additionally, the handset market is recovering from its post-pandemic slump, signaling that a massive rebound may be underway. With the growing significance of their Snapdragon X Platforms and the company’s ability to drive diversified growth, Qualcomm stock is an extremely attractive investment opportunity in 2024 and beyond.
The Unbeatable Snapdragon X Platform
Qualcomm’s Snapdragon X platforms are the backbone of modern mobile connectivity. These customized chips power smartphones, tablets, PCs, and other devices enabling them to connect to carrier networks around the world.
Evidently, Wall Street has become excited about the growth prospects of their AI CPU (Snapdragon X Elite).
This platform is said to run generative AI models 2X faster than its competition. While this has been the most talked about selling point to pounce on the stock, their diversified AI platform might be undervalued.
The Snapdragon platform includes on-device AI capabilities for the PC, smartphone, automotive, IoT, and the cloud. Their full-stack AI platform is built to optimize and deploy AI models at scale across all platforms.
Qualcomm is well-positioned to benefit from generative AI, 5G, and the mobile device market.
Revving Up the Automotive Industry
Qualcomm stock is a major player in the automotive industry, providing essential technologies for connected and autonomous vehicles. Their automotive segment has been experiencing explosive growth, with a 35% YOY increase in revenue in Q2 FY24.
The demand for connected cars with features like in-vehicle infotainment, navigation, and advanced driver-assistance systems is surging. Qualcomm’s Snapdragon automotive platforms are perfectly suited for these applications.
The ongoing development of autonomous vehicles is creating an entirely new market for powerful, reliable processors. Qualcomm has laid the groundwork and is at the forefront of this revolution, with its Snapdragon Ride platform designed specifically for autonomous driving.
Qualcomm Stock: A Massive Rebound is Underway
While the Snapdragon X and Automotive segments are key growth drivers, Qualcomm stock is also experiencing strong growth in its other business segments. Their Q2 FY24 earnings report highlights positive developments.
The handset market saw 1% YOY growth signaling a rebound is on the horizon. Growth in IoT and computing remained strong and the company’s continued focus on innovation and diversified growth mitigates risks and positions them for long-term success.
On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
